(RTO) Rentokil Initial - Overview
Sector: Industrials | Industry: Specialty Business Services | Exchange: NYSE (USA) | Market Cap: 15.772m USD | Total Return: 26.3% in 12m
Avg Turnover: 25.6M
Warnings
Beneish M-Score 0.57 > -1.5 - likely earnings manipulation
Below Avwap Earnings
Tailwinds
No distinct edge detected
Rentokil Initial plc is a United Kingdom-based provider of route-based services, specializing in pest control, hygiene, and commercial laundry. The company operates across North America, Europe, Asia, and the Middle East, managing wildlife and insect risks for diverse clients. Its hygiene division maintains essential facility infrastructure, including air purification systems and sanitization dispensers, while its specialist cleaning arm handles complex tasks such as trauma and disaster recovery.
The business model relies on a high density of service stops within specific geographic routes to maximize operational efficiency and recurring revenue. As a leader in the Environmental & Facilities Services sub-industry, the company benefits from the non-discretionary nature of pest control and regulatory hygiene requirements. Investors can further evaluate these operational metrics and valuation trends on ValueRay.
- Terminix integration synergy realization drives North American organic growth margins
- US residential pest control demand sensitivity to interest rate fluctuations
- Wage inflation and fuel costs impact route-based service operating profitability
- Strategic acquisitions in fragmented emerging markets expand global revenue footprint
- Regulatory shifts in chemical pesticide usage affect long-term service delivery costs
| Net Income: 775.6m TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.09 > 0.02 and ΔFCF/TA 1.02 > 1.0 |
| NWC/Revenue: 4.41% < 20% (prev 1.43%; Δ 2.98% < -1%) |
| CFO/TA 0.11 > 3% & CFO 1.65b > Net Income 775.6m |
| Net Debt (4.37b) to EBITDA (2.36b): 1.85 < 3 |
| Current Ratio: 1.16 > 1.5 & < 3 |
| Outstanding Shares: last quarter (507.5m) vs 12m ago 0.41% < -2% |
| Gross Margin: 13.55% > 18% (prev 0.64%; Δ 1.29k% > 0.5%) |
| Asset Turnover: 96.52% > 50% (prev 74.20%; Δ 22.32% > 0%) |
| Interest Coverage Ratio: 3.78 > 6 (EBITDA TTM 2.36b / Interest Expense TTM 417.3m) |
| A: 0.04 (Total Current Assets 3.85b - Total Current Liabilities 3.31b) / Total Assets 14.4b |
| B: 0.67 (Retained Earnings 9.69b / Total Assets 14.4b) |
| C: 0.12 (EBIT TTM 1.58b / Avg Total Assets 12.8b) |
| D: 0.61 (Book Value of Equity 5.47b / Total Liabilities 8.93b) |
| Altman-Z'' = 3.91 = AA |
| DSRI: 0.89 (Receivables 1.17b/880.0m, Revenue 12.3b/8.26b) |
| GMI: 4.76 (GM 13.55% / 64.50%) |
| AQI: 0.98 (AQ_t 0.66 / AQ_t-1 0.67) |
| SGI: 1.49 (Revenue 12.3b / 8.26b) |
| TATA: -0.06 (NI 775.6m - CFO 1.65b) / TA 14.4b) |
| Beneish M = 0.57 (Cap -4..+1) = D |
As of June 01, 2026, the stock is trading at USD 30.11 with a total of 977,103 shares traded.
Over the past week, the price has changed by -4.59%,
over one month by -11.10%,
over three months by -1.07% and
over the past year by +26.30%.
Rentokil Initial has received a consensus analysts rating of 4.00. Therefore, it is recommended to buy RTO.
- StrongBuy: 1
- Buy: 2
- Hold: 1
- Sell: 0
- StrongSell: 0
| Analysts Target Price | 36.1 | 19.9% |
P/E Trailing = 54.9825
P/E Forward = 19.084
P/S = 2.2831
P/B = 2.8697
P/EG = 0.9394
Revenue TTM = 12.3b USD
EBIT TTM = 1.58b USD
EBITDA TTM = 2.36b USD
Long Term Debt = 4.16b USD (from longTermDebt, last quarter)
Short Term Debt = 1.58b USD (from shortTermDebt, last quarter)
Debt = 6.68b USD (from shortLongTermDebtTotal, last quarter) + Leases 563.0m
Net Debt = 4.37b USD (calculated: Debt 6.68b - CCE 2.32b)
Enterprise Value = 20.1b USD (15.8b + Debt 6.68b - CCE 2.32b)
Interest Coverage Ratio = 3.78 (Ebit TTM 1.58b / Interest Expense TTM 417.3m)
EV/FCF = 15.86x (Enterprise Value 20.1b / FCF TTM 1.27b)
FCF Yield = 6.30% (FCF TTM 1.27b / Enterprise Value 20.1b)
FCF Margin = 10.30% (FCF TTM 1.27b / Revenue TTM 12.3b)
Net Margin = 6.29% (Net Income TTM 775.6m / Revenue TTM 12.3b)
Gross Margin = 13.55% ((Revenue TTM 12.3b - Cost of Revenue TTM 10.7b) / Revenue TTM)
Gross Margin QoQ = 13.88% (prev 13.53%)
Tobins Q-Ratio = 1.40 (Enterprise Value 20.1b / Total Assets 14.4b)
Interest Expense / Debt = 6.24% (Interest Expense 417.3m / Debt 6.68b)
Taxrate = 27.59% (47.8m / 173.1m)
NOPAT = 1.14b (EBIT 1.58b * (1 - 27.59%))
Current Ratio = 1.16 (Total Current Assets 3.85b / Total Current Liabilities 3.31b)
Debt / Equity = 1.22 (Debt 6.68b / totalStockholderEquity, last quarter 5.49b)
Debt / EBITDA = 1.85 (Net Debt 4.37b / EBITDA 2.36b)
Debt / FCF = 3.44 (Net Debt 4.37b / FCF TTM 1.27b)
Total Stockholder Equity = 4.79b (last 4 quarters mean from totalStockholderEquity)
RoA = 6.07% (Net Income 775.6m / Total Assets 14.4b)
RoE = 16.20% (Net Income TTM 775.6m / Total Stockholder Equity 4.79b)
RoCE = 17.62% (EBIT 1.58b / Capital Employed (Equity 4.79b + L.T.Debt 4.16b))
RoIC = 8.99% (NOPAT 1.14b / Invested Capital 12.7b)
WACC = 7.43% (E(15.8b)/V(22.5b) * Re(8.67%) + D(6.68b)/V(22.5b) * Rd(6.24%) * (1-Tc(0.28)))
Discount Rate = 8.67% (= CAPM, Blume Beta Adj.)
Shares (quarterly) Correlation: 76.41 | Cagr: 14.56%
[DCF] Terminal Value 77.97% ; FCFF base≈1.11b ; Y1≈1.27b ; Y5≈1.87b
[DCF] Fair Price = 47.23 (EV 28.1b - Net Debt 4.37b = Equity 23.8b / Shares 503.2m; r=8.35% [WACC [floored]]; 5y FCF grow 15.0% → 2.50% )
EPS Correlation: -78.39 | EPS CAGR: -68.51% | SUE: 0.0 | # QB: 0
Revenue Correlation: 93.93 | Revenue CAGR: 13.23% | SUE: N/A | # QB: 0
EPS current Year (2026-12-31): EPS=1.46 | Chg30d=+1.28% | Revisions=+33% | GrowthEPS=+13.3% | GrowthRev=+4.1%
EPS next Year (2027-12-31): EPS=1.68 | Chg30d=+1.73% | Revisions=+33% | GrowthEPS=+14.9% | GrowthRev=+4.4%
[Analyst] Revisions Ratio: +33%